Property insurance in Ethiopia — fire, allied perils and homeowners cover.

01

Fire and allied perils

The standard property policy in Ethiopia covers fire, lightning and explosion. Allied perils — flood, storm, earthquake and riot — are added as extensions. Always check which perils are included and which require a separate endorsement.

02

Residential vs commercial

Residential policies cover the building structure and contents. Commercial policies cover the building, business contents, stock and business interruption. Premium rates differ significantly between residential and commercial use.

03

How the sum insured is set

The sum insured should reflect the full reinstatement cost of the property — not the market value. Underinsurance is a major risk: if your property is insured for 50% of its value, your claim will be settled at 50% regardless of the loss amount.